Economic Interpretations of Intergenerational Correlations

22 Pages Posted: 17 May 2002

See all articles by Nathan D. Grawe

Nathan D. Grawe

Carleton College - Department of Economics

Casey B. Mulligan

University of Chicago; National Bureau of Economic Research (NBER)

Date Written: May 2002

Abstract

Economic theory offers interpretations of intergenerational correlations that are different from the theories of other disciplines, and have important policy implications. Our paper presents a subset of those theories, and shows how they are consistent with observed mobility patterns as they vary across countries, demographic groups, and economic status measure. The data may suggest that the economic approach overemphasizes credit constraints, although more work is needed to further develop some of the alternative economic models. We also show how, in the models, 'progressive' policy may reduce mobility depending on how the policy is administered and how mobility is measured.

Suggested Citation

Grawe, Nathan D. and Mulligan, Casey B., Economic Interpretations of Intergenerational Correlations (May 2002). NBER Working Paper No. w8948. Available at SSRN: https://ssrn.com/abstract=312661

Nathan D. Grawe

Carleton College - Department of Economics ( email )

One North College St.
Northfield, MN 55057
United States
507-646-5239 (Phone)
507-646-4044 (Fax)

Casey B. Mulligan (Contact Author)

University of Chicago ( email )

1126 East 59th Street
Chicago, IL 60637
United States
773-702-9017 (Phone)
773-702-8490 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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